Manazel shares have witnessed accumulation over the past two months of 160 million shares, with traded volume on Tuesday reaching 18 million shares, and the stock ended up 4.56 per cent higher at Dh0.39. Manazel shares have gained 27 per cent since June 18, after a fall of 32 per cent since March 19. We are not sure if the price action is speculative or fundamental in nature, but valuation at a price to book ratio of 0.35x certainly warrants consideration, Vrajesh Bhandari, senior portfolio analyst with Al Mal Capital, said.
As far as fundamentals are concerned, Manazel Real Estate witnessed a decent 8.4 per cent increase in net profit in 2018. Net profit came in at Dh239 million in 2018 even as revenues jumped 13 per cent to Dh974.74 million. Revenues of Manazel recorded in the last two years might not be sustainable since the development work in progress on the balance sheet is not a large amount. There are other sources such as rental income, property management fees, district cooling — which are recurring in nature, Bhandari said.
Technical analysts are expecting more upside in the stock.Traders may look to add further buy positions in Manazel. Its shares are expected to attract aggressive buying over its previous high of Dh0.40, Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said in a note. Manazel shares may hit Dh0.44/0.50 in coming weeks, he added. Investors also have several high quality names such as Emaar and Aldar trading at cheap multiples, he added.
On the Dubai Financial Market, Amlak Finance jumped 5 per cent after the company said it has made significant progress in obtaining approvals for the restructuring of its billion dollar loan. Amlak Finance shares closed 5.23 per cent higher at Dh0.342. Emaar Development ended 2 per cent higher at Dh4.21. The Dubai Financial Market closed 0.25 per cent higher at 2,722.47. The Abu Dhabi Securities Exchange ended 0.7 per cent higher at 5,077.22. Etisalat Group closed 0.6 per cent higher at Dh16.82.